I am hoping to sign contracts shortly on a garden flat in Honiton. Conveyancing lawyers have said that they are sending me a report within the next couple of days. What should I be looking out for?

The report on title for your leasehold conveyancing in Honiton should include some of the following:

• Setting out your rights in respect of the communal areas in the block.E.G., does the lease contain a right of way over a path or staircase?

I have just appointed agents to market my basement apartment in Honiton.Conveyancing is yet to be initiated but I have just had a half-yearly service charge demand – should I leave it to the buyer to sort out?

The sensible thing to do is pay the invoice as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.

I am tempted by the attractive purchase price for a two flats in Honiton which have approximately 50 years unexpired on the lease term. Will this present a problem?

There are plenty of short leases in Honiton. The lease is a right to use the property for a period of time. As the lease gets shorter the marketability of the lease decreases and it becomes more costly to extend the lease. This is why it is advisable to increase the term of the lease. It is often difficulties arise selling premises with a short lease as mortgage companies less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We advise that you get professional assistance from a conveyancer and surveyor with experience in this area

I am employed by a long established estate agency in Honiton where we see a number of leasehold sales jeopardised as a result of short leases. I have received inconsistent advice from local Honiton conveyancing solicitors. Could you confirm whether the vendor of a flat can commence the lease extension process for the buyer?

As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser can avoid having to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the disposal of the property.

An alternative approach is to extend the lease informally by agreement with the landlord either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the buyer.

Our conveyancer has advised that he intends to complete and exchange simultaneously on our sale of a £200000 apartment in Honiton in just under a week. The managing agents has quoted £360 for Landlord’s certificate, building insurance schedule and previous years service charge statements. Is the landlord entitled to charge such fees for a leasehold conveyance in Honiton?

Honiton conveyancing on leasehold flats more often than not necessitates the buyer’s solicitor sending enquiries for the landlord to address. Although the landlord is not legally bound to respond to such questions most will be willing to assist. They may levy a reasonable administration fee for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the information that you are referring to is over three hundred pounds, in some situations it is in excess of £800. The management information fee demanded by the landlord must be accompanied by a summary of entitlements and obligations in respect of administration fees, otherwise the charge is not strictly payable. Reality however dictates that you have little option but to pay whatever is demanded if you want to complete the sale of your home.

Honiton Conveyancing for Leasehold Flats - A selection of Questions you should consider before buying

In the main the cost for major works tend not to be built into the service charges, although a few managing agents in Honiton ask tenants to pay into a sinking fund and this is used to offset against larger repairs or maintenance. You will want to find out as much as possible about the company managing the block as they will affect your use and enjoyment of the property. Being a leasehold owner you will be at the mercy of the managing agents both financially and when it comes to every day matters such as the cleanliness of the communal areas. Ask other people if they are happy with them. In conclusion, find out the dates that the maintenance fees are due to the relevant party and precisely what you get for your money. If a Honiton lease has less than eighty years it will have adverse implications on the salability of the apartment. It is worth checking with your bank that they are willing to lend given the lease term. A short lease means that you will probably require a lease extension sooner rather than later and you need to have some idea of how much this will be. For most Honitonlease extensions you will be be obliged to have owned the property for two years before you are legally able to carry out a lease extension.

Other Topics

Lease Extensions in Honiton